Empty premises will cost money

In the next couple of months, significant changes relating to empty rates legislation will result in the biggest shake-up to the rating system since 1990.

With effect from 1st April 2008, owners of commercial property could face significantly increased rates bills, due to new Government legislation on rates relief for vacant industrial premises.

The former 100% relief previously enjoyed by industrial owners will cease after a six-month period from the date that either part of, or the whole of, the premises were vacated.  Similarly, for offices and retail property, the former 50% relief will cease after a three-month period.

The Government has stated the changes are a way of modernising this form of rate relief, and that they will give strong incentives to bring vacant premises back into use.  However, the controversial decision has been made without any consultation with industry leaders and despite widespread opposition.

In a recent statement issued by the Royal Institution of Chartered Surveyors, the changes were viewed as “…purely a revenue raising exercise with no thought of the potential consequences, which will undoubtedly affect many businesses.”

For businesses affected by the changes, if the correct advice is sought there may be mitigating arguments through three potential routes.  These are: 

• rating appeals
• compliance advice
• strategic short-term letting advice

If this is an issue that you would like some advice and guidance on, then Spiral can help.  We have teamed up with the Beattie Partnership, a firm of specialist Chartered Surveyors with nationwide coverage, to offer targeted, professional advice on this issue.

In addition to lodging rating appeals on a client’s behalf, Beattie have the advantage of being able to offer strategic letting advice from their corporate surveying team, and they also have rating audit and compliance experts on hand to provide you with the complete package of advice.

With industry opposition of 80% (based on a survey carried out by British Property Federation) all commercial property owners should address this situation without delay.  If you would like more information on how the Beattie Partnership can help you, then contact us here at Spiral.